Starting a business is an exciting time. Filing the right paperwork and choosing the type of entity to operate under is crucial. In addition, there is a business license application, sales and use tax form and the Federal Tax ID number that may be needed, based on your location and industry. GovDocFiling can help you understand the different structures, how they impact your fledgling company and what forms you must submit to complete the process.

  1. Choose the Entity

There are three factors that most directly affect the entity you choose: record keeping, levels of liability and taxation implications.

  • Sole Proprietorship – It’s easy to form and gives managerial control entirely to the owner. However, they are held personally liable for all business obligations.
  • Partnership – Two or more people share in the profits and losses of the organization. The benefit is that they do not pay income tax. The downside is that each partner is personally liable for all business obligations.
  • Corporation – This legal entity is separate from the founding individuals and is held legally liable for its actions. The benefit is lack of personal liability. However, there are extensive record-keeping requirements, which can be expensive.
  • Limited Liability Company (LLC) – This is a blend of the partnership and corporation entities. Owners are protected from personal liability while profits and losses are passed through without business tax requirements.
  1. Apply for a Federal Employer ID Number

Also known as an EIN, this is a unique number assigned to businesses operating in the US and is used when reporting employment taxes. The EIN filing service can help expedite your application so you may get up and running fast.

  1. Select Processing Solutions

The majority of business transactions use credit cards. A merchant account is necessary to accept these payments, which can help your organization thrive. Visit GovDocFiling for help simplifying the process of merchant account set up, and for expediting the paperwork necessary to get your business up and running.